Tuesday, February 8, 2011

Renters...Boost Your Credit Report

Rent Payments Will Soon Be Added to Credit Reports: Timely Payments Will Build Credit. Consumers who struggle to build a solid credit profile may soon get a boost by simply paying their monthly rent on time.

Until now, only negative rental information would appear on a consumer's credit report, typically after a landlord sent the account to a collection agency. But the Experian announcement means millions of consumers can build and strengthen their credit by staying current with their rent.

"Given that one-third of the U.S. population rents, we felt it was imperative to reflect the true creditworthiness of those individuals who responsibly pay their rent," Brannan Johnston, vice president and managing director at Experian RentBureau, said in a news release. "We are thrilled to be industry leaders in this initiative, and look forward to providing this credit-building avenue to residents."

**Renters should take heed, though, as this will soon become a two-way street. Experian plans to report only positive data in 2011. But negative rent information, i.e., late payments, are likely to become part of the mix in 2012.

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